04 — Properties in Motion

The Nature of Off-Market

The most compelling commercial real estate opportunities never reach public listing platforms. By the time a property appears on LoopNet or CoStar, it has typically been passed over by institutional buyers, shopped to dozens of prospects, or priced to reflect maximum seller expectations.

AVKI operates upstream of this process. Our pipeline consists exclusively of off-market opportunities sourced through direct relationships with property owners, operating partners, family offices, and regional developers. These are transactions that major national brokerages — CBRE, JLL, Cushman & Wakefield, Colliers — do not have access to, because the sellers never engaged them.

Off-market access matters for one reason: basis. Acquiring assets before competitive bidding processes compress returns enables us to structure transactions with margin of safety — room for execution variance, market shifts, or extended hold periods without impairing investor capital.

How We Source

Our deal flow originates from three channels.

First, direct relationships. Our founding team brings nearly a decade of commercial real estate experience spanning brokerage, land acquisition, underwriting, and transaction structuring. These relationships — built through hundreds of transactions and thousands of conversations — produce proprietary deal flow that cannot be replicated by technology alone.

Second, operating partner networks. We maintain relationships with regional developers, value-add operators, and asset managers across our target markets. When these partners seek capital for acquisitions, developments, or recapitalizations, AVKI serves as a distribution channel to a broader investor base than traditional syndication allows.

Third, strategic brokerage partnerships. Select regional and boutique brokerages share pre-market opportunities before formal listing periods begin. These relationships provide early access to institutional-quality assets in exchange for execution certainty and speed.

Every opportunity in our pipeline arrived through one of these channels. We do not source from public databases, auction platforms, or distressed asset clearinghouses.

The Underwriting Process

Underwriting is where most tokenization platforms fail. The temptation to move quickly — to tokenize assets for the sake of transaction volume — produces portfolios of marginal properties that sophisticated investors correctly avoid.

AVKI underwrites conservatively, with the assumption that our projections represent a floor rather than a ceiling.

Our underwriting methodology includes rent roll verification against market comparables, operating expense normalization using trailing actuals rather than pro forma assumptions, capital expenditure reserves based on property condition assessments, and exit cap rate assumptions that account for market cycle risk.

We stress-test every acquisition against downside scenarios: occupancy deterioration, rent compression, interest rate increases, and extended hold periods. Assets that cannot withstand adverse conditions do not advance to our pipeline.

For development and value-add opportunities, we layer execution risk into return requirements. Ground-up development must demonstrate returns commensurate with construction, lease-up, and market timing uncertainty. Stabilized assets with creditworthy tenancy require lower thresholds reflecting their risk profile.

This discipline means we decline the majority of opportunities we evaluate. Our pipeline represents a filtered subset of a much larger deal flow — assets that meet institutional standards for basis, location, tenancy, and risk-adjusted return potential.

What Reaches the Pipeline

An opportunity earns a place in our pipeline when it satisfies four criteria.

First, defensible basis. The acquisition price must reflect value relative to replacement cost, comparable transactions, and income potential. We do not acquire assets at market-clearing prices; we acquire assets where our basis provides downside protection.

Second, identifiable thesis. Every asset in our pipeline has a clear investment rationale — stabilized yield from credit tenancy, value creation through operational improvement, development upside from entitled land, or market appreciation in high-growth corridors. We do not tokenize assets simply because they are available.

Third, institutional quality. The physical asset, location, and tenancy must meet standards that institutional allocators — pension funds, insurance companies, endowments — would recognize as appropriate for their portfolios. Tokenization democratizes access; it does not lower quality thresholds.

Fourth, regulatory pathway. The asset must be structured for compliant tokenization under applicable securities frameworks. This includes appropriate entity structuring, disclosure documentation, and investor qualification processes.

Assets that meet all four criteria enter our active pipeline. Assets that satisfy only some criteria remain in evaluation or are declined entirely.

From Pipeline to Platform

Properties in our pipeline exist at various stages of transaction readiness.

Some assets are under letter of intent with defined closing timelines. Others are in active negotiation with sellers. A third category represents opportunities we are monitoring for future acquisition when pricing or timing aligns with our requirements.

When an asset is ready for tokenization, we complete the structuring process: establishing the appropriate legal entity, preparing disclosure documentation, integrating the asset into our technical infrastructure, and opening the opportunity to qualified investors through our distribution partners.

This process typically requires 30 to 60 days from acquisition commitment to investor availability — a significant compression from traditional syndication timelines that often extend beyond 90 days. We front-load this activity so your downstream activity can be seamless.

Engaging with Our Pipeline

Investors and institutional partners interested in specific opportunities may request additional information through our platform. Upon verification of investor qualification, we provide comprehensive documentation including:

• Full underwriting models with stated assumptions

• Property condition assessments and capital plans

• Market analysis and comparable data

• Legal structure and offering documentation

• Sponsor background and track record

We do not publish detailed offering materials publicly. Institutional-quality opportunities require institutional-grade diligence, and we reserve comprehensive information for verified participants in our distribution network.

For operating partners and property owners seeking capital through tokenized structures, we welcome conversations about potential transactions. Our evaluation process is rigorous but efficient — we provide preliminary feedback within one week of receiving complete underwriting packages.

The Standard We Maintain

Tokenization technology enables broader access to commercial real estate ownership. It does not change the fundamental requirements for successful real estate investment: disciplined sourcing, conservative underwriting, appropriate structuring, and patient capital deployment.

AVKI exists to apply these principles at scale. Every asset in our pipeline reflects the same standards we would apply to our own capital — because our alignment with investors depends on maintaining those standards without exception.

The properties in motion today represent months of work that occurred before any investor interaction. By the time an opportunity reaches our platform, the sourcing, evaluation, negotiation, and structuring work is substantially complete. What remains is capital formation and execution.

This is the foundation of institutional-quality real estate investment. Technology accelerates distribution; discipline determines outcomes.